KT Corporation

Hello. Thank you for joining us today. We will now begin the KT 2023 2nd Anniversary Performance Announcement Conference Call. Today's order is to have Kim Young-jin CFO's performance announcement and Q&A time after KT Ji Seung-hoon IRO's announcement. If you have any questions, please press the star and number on the call button. We will give you a chance to speak in the order of pressing the star and number after KT's announcement. 그럼 지금부터 KT 지승훈 IRO의 안내 말씀이 있겠습니다. Good morning and good evening. Thank you all for joining this conference call. And now we will begin the conference on the 2023 second quarter earnings results by KT. We'd like to have welcoming remarks from Mr. 승훈지 KT IRO and then Mr. 영진 김, the CFO, will present earnings results and entertain your questions. This conference will start with a presentation followed by a Q&A session. If you have a question, please press start when that is dialed in on your phone during the Q&A. Now we'd like to turn the conference over to Mr. Seunghun Ji, KT IRO.

Hello, I'm KT IRO Ji Seunghun. We will start the 2nd quarter of KT IRO 2023. This conference call is provided by webcasting on the company's website. Good afternoon.

I am Chi Seung-hoon, KT's IRO. Let's begin KT's second quarter 2023 earnings presentation. For your information, this earnings release call is being webcast live on our website, and you can follow the slides as you listen in on the call.

Before we begin, please note that today's presentation includes financial statements and operating results under the KIFRS standards that have not yet been reviewed by an outside auditor.

As we cannot ensure accuracy and completeness of financial and business data aside from the historical performance, please be reminded that these figures may be subject to change.

I will now invite our CFO, Kim Young-jin, for his remarks and presentation on the second quarter earnings results.

Good afternoon.

I'm Kim Young-jin, KT CFO. I will begin with key earnings highlights for the second quarter of 2023.

KT CFO

and KT's solid fundamentals in B2C and B2B, and robust growth from Group's core portfolio, including finance, real estate, media content, and DX businesses, second quarter consolidated and standalone operating profit both recorded a double-digit growth.

Despite the increase in business costs due to the rise in prices,

Despite rise in business expenses on higher inflation, earnings outperformed market expectations on the back of cost efficiency gained from improvement in business implementation, such as strengthening of distribution and improving outsourcing structure, which bolstered profitability.

Second quarter, standalone service revenue hence was 4 trillion, 18.6 billion, and operating profit recorded 407.5 billion won.

Each posted a growth of 2.1% and 34.2% year-over-year, respectively.

And since 2010, for the first time in 13 years, quarterly service revenue reached 4 trillion won level. Solidated revenue recorded $6,547.5 billion, while operating profit was $576.1 billion, up 3.7% and 25.5% year-over-year, respectively.

And KT's BOD made the decision to appoint Kim Yong-seop as the new CEO of the company on August 4th. The incoming CEO will be officially appointed after the approval of shareholders during the second extraordinary general meeting of shareholders to be held on August 30th.

KT will continue to work to eliminate uncertainty related to the governance structure and to improve the value of the company in the second half of the year based on solid fundamentals.

By removing governance-related uncertainties and based on solid fundamentals, KT will continue to strive towards corporate value enhancement in the second half of the year.

그럼 지금부터 2023년 2분기 실적에 대하여 말씀드리겠습니다.

영업 수익은 전년 동기 대비 3.7% 증가한 6조 5,475억 원입니다.

영업이익은

operating revenue was 6 trillion 547.5 billion up 3.7 percent on year operating profit came in at 576.1 billion won up 25.5 percent year over year On the back of stronger profitability, which is an outcome of better cost efficiencies, following improvement on structure for business implementation. Net profit was up 19% year-on-year, recording $432.5 billion. while EBITDA increased 8.5% on-year, reaching 1 trillion 505.3 billion won.

To the next page, let's take a look at operating expense.

On the back of business expansion-related spendings and rise in inflation, operating expense was up 2.0% year-over-year to 5,971.4 billion won. On the back of business expansion-related spendings and rise in inflation, operating expense was up 2.0% year-over-year to 5,971.4 billion won.

On the back of business expansion-related spendings and rise in inflation, operating expense was up 2.0% year-over-year to 5,971.4 billion won. On the back of business expansion-related spendings and rise in inflation, operating expense was up 2.0% year-over-year to 5,971.4 billion won.

Net debt-to-equity ratio as of June end 23 reported 115.4%, down 6.1 percentage points Q on Q. Net debt-to-equity ratio was also down 2 percentage points Q over Q to 44.6%.

CapEx. KT Group has a total of 1.3838 trillion won in cumulative investment in the second quarter. KT Group has a total of 9,985 billion won in cumulative investment in the second quarter, and Group 4 CapEx, which consists of major growth areas such as finance, media content, cloud IDC, and real estate, has a total of 3,853 billion won and is being implemented according to annual investment plans.

Cumulative capex for KT Group as of Q2 was $1,383.8 billion. While on a KT standalone basis, Q2 cumulative capex recorded $998.5 billion. Group subsidiary capex, which includes core growth businesses of finance, media and content, cloud and IDC, real estate, recorded $385.3 billion in line with our annual capex plan.

Business breakdown.

Telco B2C business posted a growth of 0.8% on air, reporting $2,390,000,000,000 on the back of expanded customer base, centering on premium services.

The net profit is 1.56 billion won, which increased by 0.8% compared to the previous year due to the expansion of 5G subscribers and the increase in domestic roaming demand of foreigners. The 5G subscribers are 9.28 million people, which has grown to 68% of the total number of subscribers.

Supported by growth in 5G subscribers and higher domestic roaming demand seen from inbound visitors, wireless revenue was up 0.8% on-year to 1,562,000,000 won. We now have 9,280,000 5G subscribers, accounting for 68% of total base of subscribers.

As the number of subscribers increases,

Worldline internet revenue saw 2.7% on-year growth, reaching 612.4 billion won, driven mostly by giga internet subscriber growth. Fixed line revenue was down 4.2% year-on-year to 215.8 billion won.

Next is on digital B2C business.

An evenly spread out growth coming from media and mobile platform, digital B2C business was up 3.8% year over year, reporting 575.6 billion won. IPTV business reported 1.2% year-over-year growth underpinned by growth and high ARPU subscriber base.

Next is on Telco B2B. Telco B2B business reported 1.2% year-over-year growth underpinned by growth and high ARPU subscriber base. The total B2B business was up 7.6% year-on-year, reporting 546.9 billion won on the back of growth of both B2B internet and data and enterprise voice call businesses.

B2B Internet and data business was up 5.2% on year on the back of higher demand for lease lines for CCTVs and increase in orders booked from small to mid CPs.

B2B Internet and data business was up 5.2% on year on the back of higher demand for lease lines for CCTVs and increase in orders booked from small to mid CPs.

Enterprise telephony business posted 12.3% year-over-year growth on sustained growth of MVNO's typical product, which is the deferred payment scheme.

Next is on digital B2B business. Digital B2B was up 0.6% on-year, reaching 505.9 billion won.

There was some impact from business rationalization, but it's mostly been driven by revenue stream from projects that we've already booked, such as the project on national defense broadband integrated network, as well as an uptrend from five hotels, including Myeongdong's Le Meridian Moxi Hotel, which was newly opened in November the 22nd, year 2022.

Next is on subsidiary highlight.

On higher credit card acquiring volume and sustained new business growth, including issuance of BC branded cards and lending business, BC card revenue was up 5.9% on year to 1 trillion 49.2 billion won.

SkyLife's It is 26.13 billion won, which has increased by 2.8% compared to the previous year due to the growth of the cell phone internet resale business. KT Studio Genie and Sky TV are leading the media content market by producing seven original dramas and five original variety shows in the first half of this year. KT Studio Genie and Sky TV released seven original dramas and five original entertainment programs during the first half of the year and is leading at the forefront of media and content market.

Original contents help enhance our competitiveness in the channel, and distribution through global OTTs and channels support popularity streak of these titles. But due to economic slump in the ad market, commerce market showed contraction, and so the revenue from the content subsidiary was down 5.8% on year, coming in at 268.9 billion won.

KT Cloud has been recognized as a 4 trillion won company in just a year, It has proven its value as one of the best DX companies in Korea and has succeeded in reaching an investment of 60 billion won. With the growth of the AI cloud business and the IDC business, the sales increased by 18.5% compared to the previous year and recorded 1,538 billion won.

KT Cloud, in just one year since its launch, has proven its value as Korea's top DX company, and based on 4 trillion valuation that it received, we successfully closed, raising 600 billion won of investment. Thanks to solid growth of our IDC business, and as AI cloud business took off in full scale, revenue was up 18.5% year over year, recording 153.8 billion won.

This has been a brief update on KT's financial performance of Q2 of 23.

Despite macro headwinds of inflationary pressures and recession, KT's B2C and B2B businesses have all shown robust growth supported by its fundamentals, and we yet again witnessed growth potential of Group's portfolio of businesses. In the second half, under the leadership of newly appointed CEO who is equipped with business caliber and ICT expertise, we will continue our endeavor to enhance KT's corporate value. Once again, I extend my deep gratitude to our investors and analysts, and we ask for your continued interest and support. Thank you.

For more information, please refer to the previously circulated presentation material.

We will now move into Q&A session.

Due to the time constraint, I would like to ask that you limit your questions to two per person. Now Q&A session will begin. Please press star 1, star N1 if you have any questions. If you want to cancel your questions, please press star 2, star N2. In order to allow as many Q&A chances as possible within the restricted time, we do appreciate only two questions per participant. The first question will be presented by Hwae-jae Kim from Daesin Securities. Please go ahead with your question.

Hello, I'm Hwae-jae Kim from Daesin Securities. I'm going to ask you two questions regarding your performance. The first one is about your sales and the second one is about your cost. First of all, your performance in the second quarter has greatly improved from what you expected from the market. I think it would be helpful if you could add two or three things that you would like to emphasize in terms of performance. I would appreciate it if you could tell us about the performance outlook for the second half of the year. The second is the same context, but when you look at it from the cost side, we know that the cost burden of companies has increased recently due to high prices, but compared to the concerns in such a market, it seems that KT's cost control is going well in this performance. Thank you.

I am Kim Hye-jae from Tation Securities. I have two questions I want to ask regarding your earnings results. First has to do with your top-line revenue, and second question relates to your cost. First, if we look at your second quarter earnings performance, it really outperformed market expectations. Is there any key drivers, maybe two or three key elements that you wish to highlight with regards to the background to this earnings result? And also, if you could provide some color as to what the second half outlook is from the perspective of the company, that would be helpful. Second question is on cost. High level of inflationary pressure seems to work as a burden on many companies, but it seems KT was able to really control its cost quite well. We'd like to understand as to what were the efforts that you put in to do cost controls, and so that would be helpful if you could shed light on that aspect.

Thank you for your two questions.

Thank you, Mr. Kim, for asking two questions. If you asked about the key performance regarding the revenue, top-line revenue, what were the key drivers and what our outlook is for the second half of the year, as well as cost, so why don't I combine all of that and provide you with an answer?

On the revenue side, I think we could highlight three key elements. On the revenue side, I think we could highlight three key elements.

So the first element has to do with B2C business. We were able to drive quite steady performance because we focused on improving the quality aspect, especially quality sales activities, with regards to our mobile, internet, and TV business.

Secondly, in terms of B2B business, not only are the existing B2B businesses steadily growing in sales, but the new B2B business in the first half of this year has also increased to a certain extent, The second element has to do with our B2B business.

The projects that we have already won in the past, we are starting to see monetization. We see revenue stream coming through. And in the first half of the year, we also saw growth in the number of orders that we were able to book. So the new order expansion also was a key driver behind our B2B business growth.

The third part is the Group 4 part. In the Group 4 part, it seems that the growth of the core portfolio centered on finance, real estate, media content, and cloud IDC has continued to show strong growth.

The third key driver behind the performance was from our subsidiaries, our core portfolio of businesses, which includes finance, real estate, media and content, cloud, and IDC. These areas have been able to bring about growth.

In the second half of the year, we are working hard to continue the growth of B2C and B2B businesses, and we are working hard to continue the growth of B2C and B2B businesses,

So in the same light, we will endeavor to continue to bring on growth from our B2C and B2B businesses, as well as from the businesses that's part of our core group portfolio of businesses. So based upon these endeavors, we want to be able to bring about additional growth from the KT group perspective.

I'll tell you a little bit about the cost. According to the price increase, the cost increase burden seems to be a problem that all companies have to prove in common. KT, among the cost issues, has acted as a burden as the power bill and various fees have risen due to inflation and other influences.

Now, as you've pointed out, I believe inflationary pressure does work as a cost burden for most of the companies. KT is not an exception to that. The increases in the inflation did impact our electricity costs as well as different commissions paid items.

However, KT has used digital transformation technology such as personalization and AI to facilitate the work process.

However, within KT, we've been continuously placing momentum behind making our processes more efficient by making use of AI and other digital transformation technology and also bringing about improvement in the way we do business, the business implementation process, that is. So thanks to all of these efforts, To a certain extent, these activities helped us offset some of the cost increases, the pressures that we were exposed to.

To be more specific, there was an increase in the number of customers who were self-transporting, and there was an increase in the number of customers who were self-transporting, and there was an increase in the number of customers who were self-transporting,

To provide you with a bit of a more detail, what we did was by expanding customer self-activation, we were able to optimize the entire activation-related dispatch workflow, and we applied AI across all of the call center-related workflows. As a result, we were able to improve efficiency as well as per-person productivity.

Yes. In addition, we are improving the efficiency of distribution structures by considering the change in market environment, customer service purchase, and use patterns.

Also, at the same time, in consideration of the market changes and the changes in the customers' purchase patterns and the usage patterns when it comes to the services that we offer, we have been able to further upgrade or make more sophisticated our overall structure in terms of distribution, which is helping us further improve efficiency.

In the second half of the year, we have been able to further improve

Regarding profit outlook or the earnings outlook for the second half of the year, we believe that there will still persist to be inflationary pressures as well as increases in the cost basis. However, we will continue to endeavor to further improve our top-line revenue and profitability, and our plan, hence, is to bring about an year-over-year OP growth.

We'll take the next question, please.

The next question will be presented by Sean Lee from Citigroup. Please go ahead with your question.

Thank you for the question. I have two questions. First, you announced the final candidate for CEO last Friday. I would appreciate it if you could tell us about the senior background of the CEO candidate. And do you have any plans to communicate with investors about the future business plan of the candidate? And if you have a plan, when will we be able to I'd appreciate it if you could tell me if you're going to communicate with me. The second question is about the dividend. The standard profit is better than last year, but I'd appreciate it if you could tell me about the dividend plan this year. Also, I'd appreciate it if you could comment on whether the dividend policy can continue under the new management.

Thank you for taking my question. I would also like to ask two questions. You announced last Friday that the company has selected the final candidate for the new incoming CEO. Can you shed some light as to the background of appointing this new CEO? Also, does the company have a plan to have a communication session with the investors so that he, the new incoming CEO, can explain and elaborate on the business plan that he is currently envisioning. And if so, when will that timing be? Second question has to do with your dividend plan. Your first half net profit is quite good, attractive. We'd like to understand, under the new executives of the company, would you be able to continue on with the dividend plan that the KT was able to stick to over the years?

Thank you, Mr. Lee, for your question.

Yes, allow me to first tackle your first question regarding the CEO candidates, the background under which he was appointed, the business plan that he would be envisioning, and also any plans that we have to hold a session with him and the investors.

KT 이사 후보 심사위원회는 최종 총 3인에 대한 후보자별 심층 면접과 인터뷰를 통해서 최종 후보 1인을 선정하였고 이사회는

As you would already appreciate, KT's Director Candidate Recommendation Committee has selected a total of three potential candidates and went through a very in-depth interview and have decided and selected the one final candidate to be the CEO of the company. And hence, the BOD on the 4th of August have decided on Young Sub Kim, the former LG CNS president, to be the new incoming CEO of KT. We will go through an EGM at the end of August to gain approval from our shareholders.

To be more specific, The board decided that KT would be the best fit to grow KT as a global digital platform company based on its rich corporate experience, expertise in ICT and digital transformation, and growth and innovation management.

Just to elaborate a little more, the BOD has determined that he would be the best fit and the right person to make KT into a global digital platform-based company in light of his extensive corporate business management experiences and his expertise in ICT and digital transformation and his focus on fundamental centric growth and innovation.

The candidate is the CEO of LG CNS and LG Uplus, and he has been the CEO of LG CNS for more than 7 years, and I think he has both ICT and business expertise.

Also to note, the incoming CEO, Young-seop Kim, is a finance expert. He served as a CFO of LGU Plus and LGCNS, and he was a CEO that served as the CEO of LGCNS for the longest term, and he is a person that is well-equipped with ICT and business management expertise.

Especially while working as a business manager and CEO at LGCNS, It greatly improved sales and sales, and based on the ICT expertise that the candidates accumulated over a long time through a new interview at the board meeting, it led the digital innovation ecosystem and gave a high score for providing specific plans for infrastructure construction and services that fit the digital ICT.

And also the incoming CEO, when he was serving as the CEO of LG CNS, and he was also the director of business units, I think BOD, through the very in-depth interviews, was able to identify that he was capable as a person equipped with ICT expertise, as a person who would be able to lead the digital innovation ecosystem. And he had an experience of building out an infrastructure that is on par with what is expected of a digital ICT powerhouse.

had really shared his vision and plan with regards to service offerings.

He also had shared his vision that through scaling up of ICT, ICT, infrastructure investment, as well as the telecom business. He provided his views as to how he's going to drive very solid growth, which is underpinned by trust, both internally and externally.

The strong will to improve the business and corporate culture that can lead to innovation and growth,

Because of his strong commitment in bringing improvements into the corporate culture and the way a company is managed, supported by his DX capabilities and his growth strategies that is strongly pivoted on the very fundamentals, BOD considered him to be a very right fit, the right person to be driving innovation and growth. And basically, this is the background under which the BOD had selected him, as he would be a person who would be able to really contribute to further enhancing corporate value and bring about sustainable growth.

In the future, I would like to share the vision and business strategy of the new CEO candidate

We are going to try to set up an opportunity for the market to meet our incoming CEO so that he could share his vision and strategy in regards to running this company. In terms of the timing, we will come back to you and communicate to you once we have that detail. Regarding the dividend plan, once we formally appoint our CEO and once the BOD is formed based on the views and feedback that we get from our shareholders, we will come up with the dividend plan and we'll communicate that to you.

KT's BOD has a track record of basing its decision on shareholder return policies upon the feedback that it received from its shareholders

That was the principle that we have kept to, and the new incoming BOD, I believe, will do the same.

Next question, please.

The next question will be presented by Aram Kim from Shinhan Securities. Please go ahead with your question.

Hello. Thank you for your question. I have two questions for you. First of all, I especially liked this quarter's profit and loss, but I would appreciate it if you could explain the background a little more specifically. In terms of costs and sales, is there anything that was particularly bad in the first quarter, or something that was particularly good in the second quarter, or is it good to see a profit and loss of a normal level to some extent? And secondly, I'm curious about the progress of the AI business. I would appreciate it if you could introduce the direction of the AI business that KT is currently preparing and some specific AI businesses where actual sales are occurring.

Thank you for taking my question. I also would like to ask you two questions. First, for this quarter, I see that your subsidiary contribution has been quite significant. Can you elaborate a little more on the background to this? Was it the case that during first quarter... The revenue profile wasn't as good. And then in Q2, you've seen an improvement. Is that what would explain this high level of contribution? Or what do you think is just a business as usual or normal level of profit contribution coming in from your group of subsidiaries? Second question is a question on your AI business. What is the direction that the company is envisioning for this business? And do you have specific services where you are actually generating revenue from such AI services? If so, can you tell us as to what they are?

Thank you very much, Ms.

Kim, for your questions. I will first respond to a question about our subsidiary's contribution.

This time, the profit is added to the balanced growth in the B2C and B2B areas separately from KT, and I think it has contributed to the additional growth power in the financial content, DX, and real estate areas in the Group 4.

So regarding the subsidiary contribution, on top of a very well-balanced growth that we are seeing from B2C and B2B business areas on a KT standalone basis, we have seen additional growth engine and momentum being formed from KT Group's other businesses or subsidiary businesses, including finance, content, DX, and real estate.

Out of all the subsidiaries, our two subsidiaries, namely BC Card and KT Estate, had made the biggest profit contribution.

If you first take a look at our BC card business, it is our core and key subsidiary out of KT's group financial business. And especially the acquiring business, which is a cash cow, was able to really bring about steady income revenue stream. And through the lending business, we were able to expand on our financial asset. So as such, the company has been putting in efforts to diversify the revenue source.

The new business for B2C card is also increasing the card usage of B2C customers.

And also through branded BC cards, we are able to drive transaction volume increase coming from B2C customers and also on the B2B segment as well. By extending merchant loans and corporate loans, we are able to further broaden our basis for growth. Our plan is to, through BC Cards, be able to strike a very good balance between the existing business as well as new business forays so that we can continue to grow the revenue as well as profit contribution.

Moving on to KT Estates.

It's in the business of hotels, offices, rental, housings. And out of this business, there was a revenue stream coming in from apartment sales project that was ongoing at the Wonju City.

Especially this year, as COVID-19 eased, domestic travel and leisure consumption increased, and the hotel business recorded a high growth rate. These parts contributed to the increase in profits.

Also this year, with the end of the COVID pandemic, we have seen a rebound and recovery in domestic as well as overseas travels and more leisure activities, which is leading to more spending. We now see our hotel business really uptrend in a steep manner, and that has also made profit contribution.

If I were to answer the question of how much the group's profit will be, Then you asked a question about what would be the normal level of profit contribution from our group subsidiaries.

Yes, for last year, it was around $500 billion. And size for this year, we're projecting quite similar to that of previous year, quite flat or a little more.

Yes, I will answer the second question regarding AI. And now responding to your AI question.

Recently, we've seen heightened interest in hyperscale artificial intelligence, and KT also was no exception in making preparations for laying out an AI ecosystem starting 2020, and we've been making preparations to commercialize our hyperscale AI, dubbed BIDM.

To prepare our ultra-large AI business, KT has an AI DX integration business department,

So what we are doing within KT is different divisions, namely AIDX, Convergence Business Unit, and Advanced Institute for Convergence Technology, and KT Cloud, they're all strengthening their collaboration so that we can actually scale up KT's hyperscale AI that is supported by GPU-based AI cloud infrastructure.

KT's hyperscale AI that is supported by GPU-based AI cloud infrastructure. KT's hyperscale AI that is supported by GPU-based AI cloud infrastructure. KT's hyperscale AI that is supported by GPU-based AI cloud infrastructure.

The hyperscale AI that KT is envisioning is an AI that thinks about the customer, that understands the emotions, remembers and empathizes and expresses. That is the AI that is envisioned by KT. And also, we are seeking to develop a language model that can be customized so that customer-specific and personalized services can be provided in the B2B domains.

The hyperscale AI business that KT is seeking to achieve has three major business models involved.

Now, the first one is, and you also asked about a specific business that is currently generating revenue. The first business model is bringing AI and adopting that into our cloud business. And that's one of the key representative example is AI contact center, AICC.

AICC is a model of a large BPO business. There is also a cloud-based AI contact center for small and medium-sized businesses. There is also a cloud-based AI contact center for small and medium-sized businesses. There is also a cloud-based AI contact center for small and medium-sized businesses. There is also a cloud-based AI contact center for small and medium-sized businesses.

Now, for AICC, there are three different customer segments that we actually target. One is for large customers, in which case we will provide system infrastructure. For mid-sized customers, it will be cloud-based AICC, and we call that ASIN Cloud. And also for smaller businesses, we will be providing AI integrated secretary or AI assistant, excuse me, service.

The AICC-related revenue is set to reach more than $1 billion this year. In the medium term, the goal is to grow the business to reach more than $3 billion in revenue by 2025, targeting AI communication platform entrepreneurs connecting B2B and B2C.

So for AICC revenue, our objective is to achieve more than $100 billion by the end of the year, and eventually by year 2025, we're envisioning to attain about $300 billion so that I'm becoming a community platform business provider for B2B and B2C as well.

The second thing I prepared for the AI business is Through the opening of the API, B2B customers are using the ultra-large AI medium platform and are currently preparing a model to make profits for this usage. Lastly, we are preparing to strengthen B2C product competitiveness by integrating ultra-large AI into K-team's Group 4 product service.

Second revenue model that we are currently thinking about is to open up the API so that our customers can make use of the hyperscale AI platform, the BDM platform, and pay for the usage of that platform. So that is the second revenue model that we're thinking of. Last but not least is to bring about AI capabilities that KT has to KT and KT subsidiary products and services so that we further strengthen the competitiveness of our B2C products.

Currently there are no participants with questions. We will wait for a second until there is another question.

With no further questions, we would now like to close our Q&A session.

Thank you very much for all the questions that you asked as well as the interest that you've shown us. Once again, thank you for joining us despite your very busy schedules. This brings us to the end of KT's second quarter 2023 earnings presentation. Thank you.